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[video] Quick Take: Jim Cramer Prefers General Motors over Ford

NEW YORK (TheStreet) -- One of the few stocks that have enjoyed a fresh start in 2014 is Ford (F - Get Report), up roughly 6% this January. That, however, doesn't make it Jim Cramer's top pick in the auto sector. 

The Action Alerts PLUS co-portfolio manager is a buyer of General Motors (GM - Get Report) instead. 

Although Ford continues to raise its dividend and GM doesn't pay one, GM offers more upside than Ford does, Cramer said. 

The Treasury Department has exited its position in GM, which is a positive sign because it allows the company to be more flexible with its operations and returns to shareholders.  

Although he's a buyer of GM, Cramer acknowledged Ford is a good stock, too. In January 2011, Ford was trading for $18. "It is now a much better company" than it was three years ago and trades at a discount to the price in January 2011, he added.  

He suggested Ford could rally back to $18. But Cramer concluded that GM could go to $50, which is why he's a buyer.

Shares of Ford traded recently at $16.28, while GM was at $40.06.

-- Written by Bret Kenwell in Petoskey, Mich.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

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SYM TRADE IT LAST %CHG
F $15.48 -0.32%
GM $34.77 -0.69%
AAPL $125.01 -0.63%
FB $78.10 0.70%
GOOG $524.22 -1.24%

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